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AIPEF Calls for Independent Inquiry into Coal Shortage and Imports in India

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AIPEF Calls for Independent Inquiry into Coal Shortage and Imports in India

Posted on : 29-11-2023 | Author : Press Trust of India

Photo by Business Standard

The All India Power Engineers Federation (AIPEF) has urged an independent investigation into the shortage of coal at several thermal power plants and the escalating imports of dry fuel within the country. In a statement issued, the federation emphasized the need for an enquiry into the beneficiaries of increased coal imports and demanded that the additional cost incurred due to these imports be borne by the central government.

AIPEF Chairman Shailendra Dubey highlighted the importance of investigating the main beneficiaries of coal imports and proposed that the scope of the inquiry should address this aspect.

The federation asserted that coal imports surged after the government mandated full capacity operation for imported coal-based power plants and directed domestic coal-based facilities to elevate the blending of imported coal from 4% to 6%. Additionally, they referenced the government directive under Section 11 of the Electricity Act, which initially mandated full capacity operation for imported coal-based plants from March 16 to June 15, 2023, later extended till June 2024.

AIPEF's statement stressed the necessity of conducting an independent enquiry into coal imports and proposed banning the firing of imported coal without proper scientific blending with domestic coal to prevent damage to boilers and power generation equipment. Furthermore, they suggested that if fuel import became mandatory for power generation companies, the additional cost should be borne by the Government of India to prevent its transfer to distribution companies and consumers.

Additionally, AIPEF advocated for power stations to install sulphur removal systems due to the distinct sulphur content in imported coals compared to Indian coals, highlighting the potential risks associated with improper blending and pricing discrepancies. They criticized the government's use of exceptional powers under the Electricity Act, deeming it a violation of constitutional provisions, potentially leading to the privatization or monetization of loss-making state utilities.

Moreover, the federation recommended centralizing the procurement of imported coal, suggesting that independent imports by multiple state governments from the same vendors could escalate costs and reduce bargaining power. They also urged the government to ensure that Coal India Limited (CIL) appropriately blends and supplies imported coal to various plants as per their requirements to mitigate any adverse effects on boilers' health and longevity.